Cyprus Business Now

Non-performing loans (NPLs) in Cyprus’ banking sector stood at €2.85 billion at the end of July 2022, reflecting a decrease of €69 million compared to the previous month, according to a report published on Friday by the Central Bank of Cyprus (CBC).

According to the data, the non-performing loan index in terms of total loans stood at 11 per cent at the end of July, compared to 11.2 per cent the previous month.

In July 2022, net non-performing loans, excluding restructured loans that remain non-performing according to the directive of the European Banking Authority, decreased by €38 million, falling to €2.01 billion.

Moreover, the amount of total restructured loans in July reached €3.26 billion, compared to €3.268 billion in the previous month, of which €1.4 billion continue to be classified as NPLs, compared to €1.41 billion last month.

Accumulated provisions in July fell to €1.45 billion, from €1.48 billion previously, of which €1.32 billion was for NPLs, with the NPL coverage ratio standing at 46.5 per cent, from 46 .2 per cent in June.

According to the central bank, non-performing loans relating to businesses fell to €1.11 billion in July 2022, from €1.16 billion in the previous month, of which €0.9 billion concerned small and medium-sized enterprises (SMEs).

The coverage index of corporate NPLs stood at 61.5 per cent, from 61 per cent in June, and of small and medium-sized enterprises at 65.3 per cent, from 64 per cent the previous month.

Finally, total household loans stood at €1.42 billion in July 2022, up from €1.43 the previous month, with the coverage ratio standing at 34.1 per cent, rising from 33 per cent in June.

REMU (Real Estate Management Unit), which was set up by the Bank of Cyprus with a mandate to manage the bank’s non-core properties, on Friday announced that it has launched a new promotional concept titled the “Limited Time Offer: 15 Assets – 15 Days”.

The campaign involves 15 assets across all asset classes with special pricing that will apply for 15 days only, with this week’s batch assets relating to 5 residential, 5 commercial and 5 land assets.

“The “Limited Time Offer: 15 Assets – 15 Days” concept relates to promotional reduced prices on certain assets across Cyprus, covering all asset classes and geographical areas. These selected assets are instantly available at the lowered prices, with the assets to be offered to prospective buyers on a first-come, first-served basis,” REMU said.

“The prices are firm and final and only offers at these fixed levels will be accepted,” it added.

This Limited Time Offer period starts on Friday 14th of October till Friday 28th of October 2022 and will be recurring every 2 weeks.

REMU said that “interested buyers may consider funding from Bank of Cyprus under the various Housing and other loan products offered by the Bank (First Home, Holiday Home, Investment, Land Purchase)”.

More information on funding facilities can be found here, here, and here.

The unit clarified that acceptance of an offer for acquiring an asset should not be construed as approval for housing and or any other Loan. In addition, funding criteria and conditions are based on the expected ability of the offeror to fulfil their loan obligations.

“As the “Limited Time Offer: 15 Assets – 15 Days” period is finite and short, prospective buyers will need to execute a 15% down payment (non-refundable) within 5 working days of the acceptance of the offer, and to conclude the sale within 15 working days from signing,” REMU said.

“This is to ensure that there is mutual readiness and availability from both sides, to conclude such asset disposals,” it added.

Moreover, the unit stated that offerors that will not be able to adhere to the above milestone timeframes in executing the sale will automatically be excluded from the said asset sale and the asset will be reintroduced in the market under the Limited Time Offer promotion.

Finally, the “Limited Time Offer: 15 Assets – 15 Days” prices will be valid only within the said period and asking prices will resume to the original asking prices at the lapse of the “Limited Time Offer: 15 Assets – 15 Days” period of 28th of October.

The Cyprus Stock Exchange (CSE) ended Friday, October 14 with profits.

The general Cyprus Stock Market Index was at 73.98 points at 13:00 during the day, reflecting a rise of 0.2 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 44.38 points, which represents an increase of 0.23 per cent.

The total value of transactions came up to €16,959.

In terms of the sub-indexes, the main, alternative and hotel indexes rose by 0.15 per cent, 0.36 per cent and 2.97 per cent respectively, while the investment firm index remained unchanged.

The biggest investment interest was attracted by Atlantic Insurance (-2.6 per cent), Logicom (no change), the Cyprus Cement Company (no change), KEO PLC (+5 per cent), and Tsokkos Hotels (+9.62 per cent).